PGRX 2013 Review and 2014 Outlook

  PGRX 2013 Review and 2014 Outlook

Business Wire

DENVER -- December 17, 2013

Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the
“Company”) announced the signing of an agreement that enables the Company to
extinguish its senior secured debt and issues the following statement
regarding recent developments.

Prospect Global has entered into definitive documentation that provides for
the extinguishment of all the Company’s senior secured obligations, totaling
approximately $148 million, for $25 million, or at approximately 17 cents on
the dollar.

Reaching agreement on a buyout of the Company’s debt culminates a year of
significant achievements for Prospect Global and its Holbrook Project. The
extinguishment of Prospect Global’s large debt burden will significantly
strengthen the Company’s balance sheet and provide PGRX with more flexibility
and options for raising the financing required to complete a definitive
feasibility study in 2014 and begin construction in 2015.

A recap of the major project developments and progress made towards production
during 2013.

Regulatory Approvals

The Company significantly advanced the permitting for its Holbrook Project in
2013. In February 2013, the Company submitted its application for an air
permit with the Arizona Department of Environmental Quality (“ADEQ”) and
submitted its application to convert its state mineral exploration permits to
mineral leases with the Arizona State Land Department (“ASLD”). A major
component of the submission to the ASLD was a Mineral Development Report
(“MDR”) covering a geologic assessment, economic feasibility, environmental
assessment, mine operation plans, and reclamation and closure plans.

In September 2013, the Company received an air permit to construct and operate
a 2.2 million ton per annum mine and processing plant.

During the course of 2013, the Company and its representatives have had
numerous discussions with the ASLD as they progressed the Company’s
application for a mineral lease and expect to receive a mineral lease in the
first half of 2014

Engineering

Prospect Global completed a major engineering milestone in July of 2013 when a
team of internationally-known and respected engineering and consulting firms
completed a pre-feasibility study for the Holbrook Project. Highlights
included

  *1.42 million ton per year operation
  *$825 million estimated capital cost
  *$1.4 billion NPV @ 8% and a 27% after-tax IRR
  *33 million tons of MOP production over the initial 26 year mine life

Drilling

The Company completed a 17 hole, primarily infill drilling, drilling program
in October 2013. The drilling program was designed to maximize the potential
conversion of inferred resources to the measured and indicated categories in
order to support the completion of a definitive feasibility study. In
addition, the Company completed the sampling and assaying of 6 holes from its
phase III drilling program, thereby adding in total 23 holes to the 22 holes
the Company had previously drilled which formed the basis for previous
resource estimates.

Resources

An updated geologic model and resource estimate will be completed in 2014 on
which the definitive feasibility study will be predicated.

Offtake and Strategic Partnership Talks

The Company continues to advance talks on both offtake and strategic
investment with a number of strategic and financial companies. Interest in
Prospect Global’s low-risk, low-cost potash project remains strong and
management is working with various potential partners with a view to maximize
value for shareholders.

Outlook for 2014

The Company believes it is well positioned to raise the financing to
repurchase its debt in the first quarter of 2014, receive its mineral lease
from the ASLD by mid-year and complete a definitive feasibility study for its
Holbrook Project by the end of 2014. Significant work is underway in both
regards. The completion of these three major milestones in 2014 will position
the Company to begin construction in 2015.

Regarding Forward-Looking Statements

With the exception of historical matters, the matters discussed in this press
release include forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking statements
include statements regarding current and future classification of Prospect
Global’s potash resources, development of its potash resources and potash
mining facility and the Pre-Feasibility Study. Factors that could cause actual
results to differ materially from projections or estimates include, among
others, potash prices, economic and market conditions, and the additional
risks described in Prospect Global's filings with the SEC, including Prospect
Global's Annual Report on Form 10-K/A for the year ended March 31, 2013. Most
of these factors are beyond Prospect Global's ability to predict or control.
The forward-looking statements are made as of the date hereof and, except as
required under applicable securities legislation, Prospect Global does not
assume any obligation to update any forward-looking statements. Readers are
cautioned not to put undue reliance on forward-looking statements.

About Prospect Global Resources Inc.

Prospect Global Resources Inc. is a Denver-based company engaged in the
exploration and development of a potash mine located in the Holbrook Basin of
eastern Arizona. Prospect Global’s stock is traded on the NASDAQ Capital
Market under the ticker symbol PGRX.

Additional details about Prospect Global Resources Inc. can be viewed at the
Company’s website,

www.prospectgri.com.

Contact:

The Rose Group
Elana Weiss, 310-280-3710
 
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